Transcript Slide 1

Renewable Energy
Development at NYSERDA
Jeff Peterson
NYSERDA
June 25, 2008
Discussion Outline
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Renewable Energy Task Force Recommendations
- Creates the policy foundation
•
Market Development
- Builds wholesale and retail markets to meet policy goals
•
Business Innovation
- Grow sustainable businesses to serve the market
•
Renewable Fuels
- Long term commitment through investment in research
and planning
Renewable
Energy Task
Force
RENEWABLE ENERGY TASK FORCE
The Task Force was charged with three primary goals:
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Identify barriers in New York State to wider
deployment and installation of renewable energy;
•
Recommend policies, including financial incentives to
overcome those barriers to attract clean industries to
economically depressed regions of the state; and,
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Identify future market areas where additional research
and development investment is necessary.
Clean, Secure Energy and
Economic Growth:
A Commitment to
Renewable Energy and
Enhanced Energy
Independence
THE FIRST REPORT OF THE
RENEWABLE ENERGY TASK
FORCE
TO GOVERNOR DAVID A.
PATERSON
FEBRUARY 2008
RENEWABLE ENERGY TASK FORCE
SUMMARY RECOMMENDATIONS
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Re-Commit to Meeting the State’s
Renewable Portfolio Standard Goal
and Evaluate Raising Renewable
Energy Target
Enhance and Expand New York’s
Existing Net Metering Law
Invest in Clean Energy Businesses
for Economic Growth
Develop Both a Renewable Fuels
Roadmap and a Sustainable
Biomass Feedstock Study
Expand Research and Development
efforts for Renewable Energy
Reclaim a Leadership Role Through
Building and Product Energy
Performance
Expand Purchases of Renewable
Energy by Local Governments
Create a Vehicle Efficiency/Vehicle
Miles Traveled Working Group
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Build a Sustainable Market for Solar
Energy in New York State
Develop a Strategy to Reap the
Benefits of New York’s Wind Energy
Potential
Expand Training Programs to
Sustain a Green Collar Workforce
Improve Overall Agency
Consistency and Coordination
Use Creative Financing to Promote
Investment in the Renewable
Energy Industry
Encourage the Use of Advanced
Metering and Smart-Grid
Technology
Build on Public and Private
Educational Programs
Facilitate Interconnection Processes
for Renewable Distributed
Generation
Market
Development
Renewable Portfolio Standard
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Target: 25% of retail sales served by 2013
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Existing resources account for about 19.5%
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Incremental requirement satisfied as follows:
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Main Tier (NYSERDA)
Customer-Sited Tier (NYSERDA)
Voluntary Green Retailing
State Agency Purchases
Total
9,850 GWh
50 GWH
1,800 GWh
300 GWh
12,100 GWh
Approach:
Design and administer a series of competitive procurements and incentive programs to add
new grid-tied renewable generation and increase the penetration of renewable technologies
located behind-the-meter on the customer premises and preserve existing renewable
resource base
Cumulative RPS Program Outcomes
- Main Tier New capacity (at end program year 2009) Total Available REC produced annually Facilities involved Resource type New capacity under NYSERDA contract Expected NYS economic benefits REC under contract to NYSERDA annually Weighted REC price % of 2013 program goal achieved -
approx. 1,345 MW
nearly 4,300,000
31 projects/29 in New York
16 hydro/3 biomass/13 wind
1,106 MW
approx. $ 1.4 billion
approx. 3,500,000
$ 17/MWh
approx. 35 %
Results pending execution of contracts under 3 rd
procurement cycle
NYSERDA PV Rebate Applications per Year
- SBC/RPS 600
486
500
400
284
300
262
Total
200
170
117
100
80
0
2003
2004
2005
2006
Data as of June 23, 2008
2007
2008
Role of NYSERDA
CAIR and RGGI Initiatives
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Funded/managed critical research on auction principles and practices
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Selected auction services provider and expect to execute auctions or brokered
arrangements to comply with these new initiatives
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RGGI - Region wide auction
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CAIR - NYSERDA administered auctions/brokered arrangements
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NYSERDA administers CAIR/RGGI programs on behalf of NYS DEC
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NYSERDA allocated carbon (CO2) (approx 65 million tons) and nitrous oxide (NOx)
allowances (approx 23,000 tons) respectively to sell to entities affected by these new
regulations.
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Proceeds from the sales of CO2 and NOx will be used to promote and implement programs
for energy efficiency, renewable or non-carbon emitting technologies, and innovative
carbon emissions abatement technologies with significant carbon reduction potential.
Business
Innovation
Why Businesses Need to Pay Attention
to Climate Change
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Regulatory Risk – Emission regulation.
• Supply Chain Cost – Higher component and energy costs
as suppliers pass along increasing carbon-related costs to
their customers.
• Product and Technology Opportunities - Ability to
identify new market opportunities for climate-friendly
products and services.
• Reputation – Public, or consumer, perception on the role
of the company as a steward of the environment.
What Drives Public and Private Decisions?
Public Sector Investors
Key Goals
Investment
Focus
Biggest
Concern
Private Sector Investors
Reduce early technology risks
Address real market needs-investments
Early investments in market focused businesses with: Strong
Early, high risk RD&D; Technology performance
management teams; Products – not technologies; Market
and cost reduction; Technology certification
development and access to these markets: customer
and performance verification
drive
Technical showstoppers
-Technical capabilities, benefits and applications;
competition
Other Factors -Macro market perspectives on energy needs &
trends
-Public policy and public good needs & trends
-Fairness of opportunities, and not competing with
the private sector
Collaborations
-Commercialization is the responsibility of private
sector
Customer and market showstoppers
Market driven, customer benefits; Broader (beyond energy)
sets of industry applications: Market competition; and entry
strategies; Ability to factor public policy impacts into
investment and business formation decisions effectively
Collaborations to reduce the risk and improve the profitability
of investments
Enablers
needed
-Collaborations that accelerate the
deployment and use of the technology
-Information, people, knowledge and data necessary for sound
investments
-Entrepreneurial focus on market and business development
issues
Funding
Process
Competitive written proposals
Decisions based on management team, due diligence.
-Technology is commercialized and public
good goals are met
- Public sector has no direct ownership
Profit through capital appreciation, i.e., increase in value of
ownership stake. Profits are often realized at later investment
stages through an exit strategy
Pay Off
Based on: J.E. Pater, Framework for Evaluating the Total Value Proposition of Clean Energy Technologies, Technical Report NREL/TP-620-38597, February
2006
Rebates alone will not Build a Market
Component
Manufacturing
Technology
Integration
Marketing and
Distribution
Project
Development/
Installation
Project
Finance
System
Operation
Typical Residential System
Typical Utility System
Full Vertical Integration
Electricity
Sales
Support Business
Innovation along with
Technology
Development
Business
Technology
Product Definition
Business Concept
Technology Development
Manufacturing
Will the
technology
work?
Will it work
for a
customer?
Is the
business
viable?
Business
Validation
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Navigant, 2008
Clean Energy Business Growth &
Development
PON 1124
$6 million of funding -$200,000 per project
Round 3 – August 4, 2008
Partner with companies to share the risk of -Innovation
Entrepreneurship
Implementation of new business models and strategies
-- that will enable the adoption and diffusion of clean energy
technology.
Clean Energy Technology
Manufacturing Incentive Program
PON 1176
$10 MILLION AVAILABLE - $1.5 million per project
PROPOSALS
-- ACCEPTED ANYTIME
Expand the level of manufacturing of renewable, clean, and energyefficient products in New York through …
… funding for Facility and Site Characterization, Project
Development and Construction, and Project Commercial Operation
Renewable Fuels
RETF Renewable Fuels
• Governor Paterson’s Renewable Energy Task Force included
examination of Renewable Fuels
• TF Report concluded: “…no single renewable fuel will answer
increasing energy needs…NY should address critical concerns
regarding specific fuels…both to solve energy mandates and
prioritize environmental, land-use and health concerns in policy
decision making.”
• Calls for completion of Renewable Fuels Roadmap
• RFP will be issued by NYSERDA very soon
 Located at the Griffiss Technology Park in Rome, NY
 Pilot Plant: 500,000 gallons/year of ethanol
 NYSERDA Funds: $14.8 million Total Cost: $29.8 million
 Pilot plant used to test proprietary thermophilic microbes (e.g. T.
saccharolyticum) and engineered Consolidated Bioprocessing (CBP)
microorganism (reduce enzyme requirement)
 Partners: Genencor, Cornell, Clarkson, Dartmouth
 Feedstocks: willows, papermill sludge, switch grass
 Co-located with the Lyonsdale 19MW power plant.
 Pilot Plant:130,000 gallons/year of ethanol
 NYSERDA Funds: $10.3 million Total Cost: $20.7 million
 Biomass extraction (hemicellulose), membrane separation
fermentation developed and tested at SUNY-ESF
 Partners: SUNY-ESF, New Energy Capital, O’Brien & Gere
 Feedstocks: willows, harvested wood
and
The Wacko Tree-huggers
Secret Ploy
The Way I See It #289
So-called “global-warming” is just a
secret ploy by wacko tree-huggers to
make America energy independent,
clean our air and water, improve the fuel
efficiency of our vehicles, kick-start 21st
century industries, and make our cities
safer and more livable. Don’t let them
get away with it!
-- Chip Giller
Founder of Grist.org, where environmentally minded people gather
online.
Jeff Peterson
NYSERDA
17 Columbia Circle
Albany, NY 12203
518-862-1090 ext. 3288
[email protected]